Multiple Choice
It is not likely that farm price supports will be replaced by direct transfer payments to farmers because _____
A) direct transfer payments aimed at preserving the family farm raise the costs of entry.
B) direct transfer payments would attract public attention and threaten the survival of the program.
C) there is deadweight loss to society in the case of direct transfer payments.
D) direct transfers would benefit only the large farmers in proportion to their volume and efficiency.
E) prices seek the market level, which is very high in the case of direct transfer payments.
Correct Answer:
Verified
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